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LEX LOCALIS - JOURNAL OF LOCAL SELF-GOVERNMENT Vol. 7, No. 2, pp 107 - 127, April 2009
THEMED PAPER
Legal and Institutional Framework of Local Self-Government in the Republic of Macedonia
GORDANA SILJANOVSKA-DAVKOVA1
ABSTRACT In general, a comprehensive and well-designed local self-government will significantly improve community management in the Republic of Macedonia. The increased competences and strengthening of the political culture of the population will result in a more active participation of citizens in local processes. An increase in the professional level of the executive and administrative bodies along with improved communication with a civil society will have a positive impact on the quality of municipal management. Decentralized approaches to local development can be a sustainable way to preserve multiculturalism in an ethnically and culturally diverse country. The outcome of the process will depend on the level of public engagement, accountability of local leaders, and transparency of procedures. KEYWORDS: • local self-government • legal framework • municipality • decentralization • Macedonia
CORRESPONDENCE ADDRESS: Dr. Gordana Siljanovska-Davkova, Ss. Cyril and Methodius University, Faculty of Law 'Iustianus Primus', Bul. Krste Petkov Misirkov bb., 1000 Skopje, Macedonia, e-mail: [email protected]. ISSN 1581-5374 Print/1855-363X Online © 2008 Lex localis (Maribor, Graz, Trieste, Split) Avaliable online at http://pub.lex-localis.info.
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1 Introduction
Decentralization is a strategic goal for Macedonia. It is not only consistent with
Euro-Atlantic integration of the Republic of Macedonia, but it is also the
requirement.1 For Macedonia, preparation for accession to the European Union
also means enhancing the quality of political decision making through the
inclusion of local authorities and increased public participation. Decentralisation
has to bring government closer to the people, making it more accessible and
knowledgeable about local conditions and thus more responsive to people's needs.
This should lead to improved government services and to a more effective and
need-based use of public resources.
Apart from its governance merits, the decentralization process is a key
requirement of the Ohrid Peace Framework Agreement, which in turn is a
precondition for the country's integration into the European Union. Nevertheless,
it is not a panacea. Its success depends on many political and social factors and
will be measured against which the quality of life and equal access to development
opportunities will have to improve. In this respect, it will be crucial for the
ongoing reform processes in the Republic of Macedonia. Decentralization and
integration go hand-in-hand and decentralization, therefore, is an important part of
Macedonia's efforts to integrate into the EU (Siljanovska-Davkova, 2006: 17).
2 Fundamental Aspects of Local Self-Government
2.1 Legal Basis
2.1.1 The European Charter for Local Self -Government
There is no democracy without local self-government. Local self-government is
contitio sine qua non of democratic and integrated Europe. The Charter of Local
Self-Government was a crown of the wave of decentralization that came at the end
of the 1970s and continued in the 1980s (D‟Ambrosio, 1999: 3).
The Republic of Macedonia ratified the Charter on 6 June 1997, and it came into
force on 1 October 1997. According to the Macedonian Constitution (Article 118)
"The international agreements ratified in accordance with the constitution are part
of the internal legal order and cannot be changed by law." Thus, the European
Charter for Local Self-Government is “ius cogens “in the Republic of Macedonia.2
2.1.2 Constitutional Framework
Local self-government is materia constitutionis in the Republic of Macedonia. It is
one of the fundamental values of the constitutional order (Article 8). Section V of
the Constitution (Article 114-117):
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guarantees the right of citizens to local self-government;
establishes municipalities as units of local self-government;
foresees that forms of neighbourhood self-government may be
established within municipalities;
guarantees municipalities autonomy in the performance of competences,
specified in the Constitution and law;
guarantees municipalities own financial resources as well as state
funding;
promotes direct and representative local democracy;
defines the city of Skopje as a separate unit of local self-government, the
organization of which is regulated by a separate law. (See Siljanovska-
Davkova, 2004)
In accordance with Amendment XVII from 2001, in local self-government units,
citizens directly and through representatives decide on issues of local relevance,
particularly in the fields of public services, urban and rural planning, environment
protection, local economic development, local finances, municipal utility
activities, culture, sport, education, health care and in other fields determined by
law.3
2.1.3 The Main Legislative Texts
The new Local Self-Government Act passed in 2002 put into operation the
constitutional provisions and created the basis for the commencement of the
decentralization process. Besides this organic law, 12 laws for rounding up the
local self-government system (e.g., on fiscal decentralization, territorial
restructuring, local elections, participation of citizens in the decision making
process) are already adopted or changed as well as more than 80 laws on transfer
of competences in compliance with Article 22 of the Local Self-Government Act,
or they contain provisions concerning local self-government.
In accordance with Amendments of 2001, the parliamentary procedure called for
the adoption of the Local Self-Government Act, the Local Finance Act, the Local
Elections Act, and the Municipal Boundaries Act. Thus, the city of Skopje has
been changed in the spirit of the consensus democracy model. Namely, the organic
Local Self-Government Act can be adopted by a two-thirds majority vote of the
total number of the Representatives, within which there must be a majority of the
votes of the total number of the representatives who belong to the communities in
the majority of the population of the Republic of Macedonia. This "double
majority system" is also needed to adopt the Local Finance Act, the Local
Elections Act, the Municipal Boundaries Act, the city of Skopje Act, and to
adopt the laws that directly affect culture, use of language, education, personal
documentation, and use of symbols.
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2.2 Local Authorities
The Republic of Macedonia has a single-tier system of local self-government with
municipalities as local units. The Territorial Organization Act of 2004 decreased
the number of municipalities from 124 to 84, and the city of Skopje was
recognized as a particular unit of local self-government.
This reform of the territorial structure of the municipalities seems to have been
prompted by a twofold consideration:
the need to streamline the organisation of the municipalities by scrapping
those which are too small and have not proved viable; despite the reform,
the structure of the municipalities remains diverse, with numerous small
ones: 16 municipalities have a population smaller than 5 000 and 32 a
population smaller than 10 000. Only 22 municipalities have a population
greater than 30 000;
the intention to adjust the relative proportions of the Macedonian
majority and ethnic Albanian minority in some municipalities (thus in the
municipality of Kičevo, Albanians went from 20% of the population to
50% when it was merged with the neighbouring municipalities). This
was criticised as an apparent concession to the Albanian minority, as well
as “gerrymandering” (Nikolovska & Siljanovska-Davkova, 2001: 56).
This reorganisation decided at central level has not been the subject of prior
consultation of the local authorities concerned, and it met with considerable
resistance. A series of referenda (30 local referendums were successful) and a
national referendum (with no success) were held to oppose the law. The process
was ultimately accepted as provided for in the law (Skaric & Siljanovska-
Davkova, 2007: 596).
The scrapping of some municipalities did not produce a better representation of
those units, classified as smaller, than a municipality (villages comprising the
former municipalities).
In the case of the capital, the 2004 reorganisation provides for 10 municipalities
(as opposed to the seven previous ones) within the City of Skopje, and extended
its boundaries to include rural areas. As a result, the Albanian community now
makes up over 20% of the population in the city, thus making it bilingual.
2.2.1 Autonomy within the Constitution and Law
The central authorities are committed to setting forth all the basic principles,
modes and legal instruments of local government functioning to determine its
legal framework. They
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may found new local government units and change their areas and seats;
organize and conduct local elections;
supervise the operation of the municipal organs;
Local authorities are legal entities which
have a territory and a name, and may have coat of arms and a flag;
have own regulations, among which the Statute is the highest one;
have own and delegated competences;
have own and other sources of financing;
have their own bodies directly elected by citizens;
have residents who are the citizens of the Republic of Macedonia with
permanent residence on the territory of the municipality.
2.2.2 Creation of Municipalities and Boundary Changes
The Local Self-Government Act determines the basic criteria for establishment of
local government units.
A municipality is founded on the territory of one or more settlements linked by
common needs and interests of the local population, and where there are
conditions for economic and social development and for citizen participation in
the decision making process.
The territory on which a municipality is established should represent a naturally,
geographically and economically linked entity with communication networks
among populated places and gravitation towards a common centre, as well as with
built infrastructure facilities and public objects.
The Territorial Organization Act, applying to local self-government units,
determines the territory, names, seats and borders of the municipalities, the
procedure for establishing municipalities, and other issues regarding the territorial
division.
The Local Self-Government Act of 2002 does not include Article 5 of the
European Charter of Local Self-Government. It is poorer regarding this issue in
comparison with the Local Self-Government Act of 1995. But, as mentioned
above, Article 5 as well as the Charter as a whole are ius cogens by Article 118 of
the Macedonian Constitution.
According to Article 2 of the Territorial Organization Act, applying to local self-
government units of 2004,”A new municipality can be established (amalgamated,
divided and the boundaries can be changed) after prior consultation with the
citizens in the municipality concerned.”
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There had been consultation with few municipal authorities before the last
territorial changes were made in Macedonia in 2004. It means that the vast
majority of them were not consulted. The European Charter Article 5 put an
emphasis on citizen participation. However, citizens were not consulted at all
regarding the last territorial division. Thus, the reorganization was based largely
on political and ethnic compromises and did not take into account the objective
criteria, such as the quality of life, including the quality of public services, etc.4
2.3 The Right to Association and Inter-Municipal Cooperation
In accordance with law, municipalities may form associations for the purposes of
protection and enhancement of a common interest.
The Association to which 2/3 of the municipalities from the whole territory of the
Republic of Macedonia have joined shall have the right to:
cooperate with the Government regarding the issues of importance for the
municipalities in the Republic of Macedonia;
initiate adopting of the laws that refer to the improvement of the local
self-government;
participate with its proposals in the procedure for projection of the draft
Budget of the Republic of Macedonia in the part that refers to allocation
of funds to the municipalities for the performance of competences
determined by law;
cooperate with similar organizations from other countries and represent
the Republic of Macedonia in international organizations of local
authorities.
Association of Municipalities of the Republic of Macedonia shall be established,
organized, shall function and shall be registered in the manner and under
conditions determined by law.
The Local Self-Government Act of 2002 promotes voluntary forms of
associations of municipalities.
There is a wide variety of legal forms of inter-municipal cooperation. The
Macedonian municipalities have the opportunity to cooperate both between
themselves and with the local self-government units of other countries as well as
with international organizations of local communities, and they may be members
of international organizations of local governments.
In order to accomplish common interests and perform common tasks, the
Macedonian municipalities may join funds and establish shared public agencies in
accordance with law. The municipalities may also establish joint administrative
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bodies in certain areas on the basis of a decision adopted with majority vote of the
total number of members of each municipal council. In these cases, a written
agreement shall be signed to define the municipalities that establish a shared
administration body.
Despite the reorganisation of 2004, there are still a large number of small
municipalities (16 of them with a population of less than 5 000). There are also
wide disparities between municipalities in terms of their resources. This being so,
inter-municipal co-operation can be an appropriate way of strengthening local
democracy.
Inter-municipal co-operation is especially useful in Macedonia because there is no
intermediate level between the state and municipalities. This question of an
intermediate level might be important in the future in the context of a regional
development policy.
Overall, there is still very little inter-municipal co-operation and municipal
representatives do not realise the benefits it offers. This is due to traditions of the
historically rooted particularism. So, the obstacles are partly cultural. They could
be better overcome by providing more information in this area and through
financial and technical incentives.
2.4 Powers (Competencies)
There are two kinds of competences: competences mandated by law and delegated
competences.
The new Local Self-Government Act of 2002 makes a qualitative change
compared to the Act of 1995 increasing the number of competences, previously
shared, now being inherently municipal competences.
The Local Self-Government Act (Article 22) guarantees the municipalities the
following competences:
Urban and rural planning: urban planning and issuing of technical
documentation for construction and issuing construction permits;
regulation and maintenance of construction land;
Protection of the environment, nature and space regulation: measures for
protection and prevention of water, atmosphere and land pollution,
protection of nature, protection against noise and ionizing radiation;
Local economic development: local economic development planning;
determining development and structural priorities; running the local
economic policy; support for the development of small and medium-
sized enterprises and entrepreneurship at local level and in that context,
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participation in the establishment and development of a local network of
institutions and agencies; promotion of partnership;
Municipal utility activities: potable water supply; technological water
supply; drainage and purification of waste waters; public illumination;
drainage and treatment of precipitation; maintenance of public hygiene;
collection, transport and treatment of municipal solid and technological
waste; regulation and organization of public local transportation of
passengers; natural gas and heating energy supplies; maintenance of
graves, cemeteries, crematoria and provision of burial services;
construction, maintenance, reconstruction and protection of local roads,
streets and other infrastructure facilities; regulation of traffic regime;
construction and maintenance of street traffic signalization; construction
and maintenance of public parking spaces; removal of improperly parked
vehicles; removal of damaged vehicles from public spaces; construction
and maintenance of markets; chimney sweeping; maintenance and use of
parks, green spaces, park forests and recreational spaces; regulation,
maintenance and use of river beds in urbanized parts, determining of
names of streets, squares, bridges and other infrastructure facilities, etc.;
Culture: cultural heritage preservation; celebration of events and persons
of importance for the culture and history of the municipality;
Sport and recreation: development of general sport and recreational
activities of the citizens; organization of sport events; maintenance and
construction of sports facilities of public interest for the municipality,
support of sports associations;
Social welfare and child protection: kindergartens and homes for the
elderly (ownership, financing, investments and maintenance); exercising
of social care for disabled persons, children without parents and parental
care, children with educational and social problems, children with special
needs, children from single-parent families, deserted children, persons
exposed to social risk, persons with drug and alcohol addiction problems;
raising of citizens‟ awareness, housing of persons put to social risk,
sheltering and education of pre-school children; the performance of these
competences shall be in accordance with the National Programme for
Development of Social Care;
Education: establishing, financing and administering the primary and
secondary schools in cooperation with the Central Government and in
accordance with law; organizing the transportation of students and their
accommodation in dormitories;
Healthcare: governance of the network of public health organizations and
primary care buildings to include the representation of local government
in all the boards of all publicly owned healthcare organizations; health
improvement; preventive activities; protection of health of workers and
protection at work; health oversight over the environment; control over
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contagious diseases; assistance to patients with special needs (mental
health, child abuse, etc.); and other areas that will be determined by law;
Execution of preparations and undertaking of activities for protection and
rescuing citizens and goods on their territory against war destructions,
natural and other disasters as well as against the consequences caused by
them in the state of war;
Fire fighting activities performed by the territorial fire fighting brigades;
Supervision over the performance of activities within the municipal
competence;
Other activities determined by law.
2.4.1 Delegated Competencies
In accordance with the Constitution (Article 115) and the Local Self-Government
Act (Article 23), a public administration body may delegate the execution of
certain tasks from its competence to the Mayor. In these cases, the funds from the
budget of the Republic of Macedonia, anticipated for the performance of these
tasks, shall also be transferred. The way of performing the delegated competences
may be adjusted to local conditions, observing the standards determined by law.
2.5 Municipal Bodies
The municipal bodies are the following: the Council and the Mayor.
2.5.1 Council
The Council is a representative body of the citizens. The number of council
members depends on the number of inhabitants of the municipality and shall not
be less than 9 (if the number of residents is up to 5,000) nor more than 33
members (if the number of residents exceeds 100,000). The only exception to this
rule is the Council of the City of Skopje that consists of 45 members. Councillors
are elected by proportional vote according to the D'Hondt method.
Every citizen of the Republic of Macedonia acquires the right to vote when
reaching 18 years of age. A citizen must be a permanent resident of the
municipality where he/she votes.
The lists of municipal councillor candidates may be nominated by officially
registered political parties and groups of at least 100 citizens, if the number of
registered voters is up to 10,000; at least 150 citizens, if the number of registered
voters is up to 30,000; at least 250 citizens, if the number of registered voters is up
to 50,000; at least 350 citizens, if the number of registered voters is up to 100,000;
at least 450 citizens, if the number of registered voters is higher than 100,000. In
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Skopje, at least 1,000 citizens may nominate municipal councillor candidates for
the list.
The candidates and the citizens supporting them must be both Macedonian
citizens and permanent residents in the municipalities where they are nominated.
The term of office of the councillors is four years. They represent the citizens and
make decisions in the Council according to their best convictions.
The Council shall:
enact the statute of the municipality and other regulations;
adopt the municipal budget and the annual balance sheet of the
municipality;
determine the amount of the own resources of revenues for financing the
municipality within the frameworks determined by law;
establish public agencies within the competence of the municipality and
supervise their work;
appoint members of the managing boards of the public agencies
established by it;
adopt work programmes and financial programmes for financing public
agencies established by the municipality;
adopt the budget execution report and the annual balance sheet of the
municipality;
decide on issuing permits for the performance of public interest activities
in accordance with law;
adopt the reports on the operation and the annual balance sheet of public
agencies established by the municipality;
dispose of the municipal property;
elect the head of the regional unit of the Ministry of Interior Affairs in the
municipality in accordance with law;
review and adopt the annual report on public safety on the territory of the
municipality which is submitted to the Minister of Interior Affairs and
the Public Attorney;
give recommendations to the head of the regional unit of the Ministry of
Interior Affairs in the sphere of public safety and traffic safety; and
perform other activities determined by law.
The Council work sessions are convened by the Municipal Council Chairman.
They must be attended by a majority of the total number of councillors. The
Council makes decisions by a majority vote of the councillors attending, unless
law and the Statute determine otherwise. The Statute, rules of procedure, budget
and balance of accounts are adopted by a majority vote of the total number of
councillors. The Council sessions are open to the public.
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2.5.1.1 Municipal Council Chairman
The Municipal Council Chairman shall be elected by a majority vote of the total
number of councillors. He/she shall: convene and chair the Council sessions, take
care of the organization and work of the Council, sign the regulations adopted by
the Council to submit them to the Mayor for publication.
2.5.1.2 Dissolution of the Council
The Municipal Council shall be dismissed if a majority of the total number of its
members support the same (Self-initiated Council Dissolution).
The Council shall be dismissed if
it readopts the regulation that was previously annulled or abolished by the
decision of the Constitutional Court of the Republic of Macedonia;
it adopts a decision that endangers the sovereignty and territorial integrity
of the Republic of Macedonia;
it does not hold a session during a period longer than 6 months;
it does not adopt the Budget and the annual balance sheet by 31 March
of the current year.
Upon the occurrence of one of the above-mentioned conditions, the Mayor shall
be obliged to immediately inform the Ministry of Local Self-Government.
2.5.1.3 Internal Organization of the Council
Commissions are mainly established to cover municipal competences. They can
be either standing or ad hoc bodies. The Statute regulates their number and
responsibilities.
The Council elects the commission members. Some of them are councillors,
others are experts in the fields of commission activities.
In the municipality, in which more than 20% of the total number of the municipal
residents, determined during the last census, are members of a certain community,
an Inter-Community Relations Committee shall be established. This Committee
shall be composed of an equal number of representatives of each community
represented in the municipality. The Committee shall review issues that refer to
the relations among the communities represented in the municipality, and shall
give opinions and propose ways to resolve issues. The Municipal Council shall be
obliged to review the opinions and proposals given.
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2.5.2. Mayor
The Mayor is the executive body of a municipality.
The nomination procedure and legal conditions for Mayor are identical to those set
for councillors.
The Mayor is elected according to the majority electoral model. He/she is elected
by a majority vote of those who voted if at least one-third of the voters in the
entire constituency took part in the elections in a particular municipality. If not,
there will be a second round of the elections for the two candidates who obtained
the most votes in the first round. The winner is the candidate who won a majority
of the votes in the second round of elections.
2.5.2.1 Mayoral Competences
The mayor shall
represent and act as an agent of the municipality;
control the legality of the regulations of the council;
publish the regulations of the council in the Official Journal of the
municipality;
ensure the enforcement of the council decisions;
ensure the performance of the activities delegated to the municipality by
law;
initiate and propose adoption of regulations that fall within the council‟s
competence;
propose the annual budget and the annual balance sheet to the budget of
the municipality;
execute the municipal budget;
elect managers of public agencies, established by the municipality, on the
basis of a public job announcement;
regularly inform the council on the performance of his/her competences
in accordance with the statute;
resolve the administrative matters in accordance with law, statute or
other regulations of the council;
adopt a Personnel Manual for the municipal administration;
manage the municipal administration;
decide on hiring, rights, duties and responsibilities of the employees of
the municipal administration, unless otherwise stipulated by law;
ensure the regular and legal use, maintenance and protection of the
municipal property in accordance with law and statute; and
perform other activities determined by law and the statute.
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The mayor may authorize a responsible official of the municipality to make
decisions in administrative matters and to sign acts.
2.5.2.2 Performing the Functions of Mayor
The Mayor shall perform his/her functions in a professional manner. While
performing the functions of the Mayor, he/she shall not perform any other
professional activities. The Mayor shall not be held criminally liable or
imprisoned for any opinions or views expressed before the council.
The Mayor shall determine which council member shall replace him/her in the
case of his/her inability or absence. The council chairperson shall not replace the
Mayor.
2.5.2.3. Mayor’s Conflict of Interest
The Mayor shall not be appointed a member of the supervisory, administrative and
control bodies of trade associations, public enterprises and public institutions.
The Mayor shall not participate in the decision making process on issues in which
he/she, his/her spouse, children or relative to the second level of the side relative
line has financial or other personal interest.
2.5.2.4 Termination of the Mandate of the Mayor
The mandate of the Mayor shall terminate by the force of law
if he/she resigns;
if he/she dies;
if he/she is convicted with an absolute decree for a criminal offence and
sentenced to more than 6 months of imprisonment;
in the case of an irrevocable resolution with which he/she is deprived of
working ability;
in the case of incompatibility with his/her function according to the Local
Elections Act;
in the case of unjustified absence longer than six months;
in the case he/she ceases to be a resident of the municipality.
2.6 Municipal Administration
Municipal administration is organized for the performance of the activities that
fall within the competence of the municipal bodies. It is organized in sectors and
departments. Its organization, scope and the way of performing the tasks of the
municipal administration shall be determined by the council upon the proposal of
the Mayor.
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The municipality may organize municipal inspection department for the purposes
of carrying out inspection supervision of the performance of the activities that fall
within its competence.
The municipal administration
prepares acts for the Council and the Mayor;
prepares the Council sessions as well as sessions of its standing and
temporary committees;
performs professional tasks for the Council and the Mayor;
collects own revenues of the municipalities;
does municipal accounting;
monitors the situation in the areas under the municipal competence,
analyses the situation, raises initiatives and gives proposals for problem
solving;
presents information on the activities of the municipality upon the request
of the responsible bodies or in accordance with law;
manages municipal documents and keeps them until they are destroyed or
handed to the State Archive of the Republic of Macedonia; and
performs other tasks determined by the Council and the Mayor.
The municipal administration employees, who perform professional, normative-
legal, executive, administrative, supervisory tasks, and decide on administrative
issues, have a status of public servants.
2.6.1 Appropriate and Equitable Representation of Ethnic Communities
Appropriate and equitable representation of the citizens belonging to all ethnic
communities as well as professionalism and competence shall be observed in the
hiring process in the municipal administration and public institutions established
by the municipalities.
2.7 Direct Democracy
The citizens participate directly in decision making on issues of local relevance
through citizen's initiatives, public meetings and referendums.
The citizens have the right to propose the Council to adopt an act in order to
resolve certain issues under its authority. If the proposal is supported by at least
10% of the voters, it must be discussed by the Council within the term determined
by the Statute of the local government unit, or within 90 days at the latest.
A public meeting of citizens can be called for the entire municipality or for a part
of it. The meeting is called by the Mayor on his own initiative, or upon the request
of at least 10% of the electorate in the municipality or the part of the municipality
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it concerns. The public meeting of the citizens may adopt general guidelines
regarding the work of the municipal organs by a majority of votes of the persons
attending the meeting. The local bodies are obliged to take into consideration
these guidelines by adopting acts or decisions within 90 days.
The Council of the local government unit may issue a notice of referendum on its
own initiative concerning matters within its sphere of competence, or upon a
request of 20% of the voters. The decision adopted on the referendum shall be
binding for the Council.
2.8 Local Finance
Municipal property contains of land, facilities, money, and rights. The
municipalities may dispose and manage their assets in the way determined by law.
The Law on Financing the Local Authorities from 2004 reopened the process of
fiscal decentralization. (Maksimovska-Veljanovski, 2007)
2.8.1 Municipal sources of revenues
Municipal property includes land, facilities, money, and rights. The municipalities
may dispose and manage their assets in the way determined by law. The Local
Authority Financing Act of 2004 reopened the process of fiscal decentralization
(Maksimovska-Veljanovski, 2007).
2.8.1 Municipal Revenue Sources
Municipal revenue sources:
Local taxes: property tax, inheritance and gift tax, real estate transaction
tax; 100% of personal income tax for individual craftsmen. The local
bodies themselves shall administer these taxes.
Local fees: municipal utility fee; administrative fee. The local authorities
are entitled to determine the amount of the fees as well as to collect them.
Local charges: construction land arrangement charge, charges for urban
and spatial plans, municipal service utilization charges. The local
authorities administer the construction land charge as well as a charge for
urban and spatial plans. Local service delivery is provided by utility
companies, and consumers pay them directly for their services.
Property revenues: property sale revenue, rent revenue, interest rate
revenue. These revenues are determined and collected by the local
authorities.
Penalty revenues. These revenues are determined and collected by the
local authorities for violation of municipal regulations.
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Donations (foreign and domestic) regulated by an agreement between the
donor and the Mayor.
Local voluntary contribution.
Loans. Municipalities need authorization from the Government to take
out loans.
Subsidies from: Fund for economically underdeveloped areas; Fund for
municipal utility activities and roads; Fund for water pipes and sewerage.
Grants: purpose grants; non purpose grants; block grants for expenditure;
grants for capital investments; grants for delegated competencies.
2.8.2 Shared revenues
3% of personal income tax;
3% of VAT;
At least 50% of VAT shall be distributed in accordance with the number of
residents in a municipality and another criteria determined by the government
bylaw.
2.8.3 Fiscal decentralization
In accordance with The Local Authority Financing Act, the fiscal decentralization
shall be implemented in two stages, and the budget and fund transfers to
municipalities shall accompany the transfer of competences. On 1st of January, 65
municipalities out of 124 or 85% of them have entered the second stage.
2.9 Control over the Functioning of Municipal Bodies
2.9.1 Types and Modes of Control
The control over the functioning of the municipal bodies in executing their
competences includes supervision of legality and control of financial operations.
The control over the functioning of the municipal bodies with delegated functions
under the competence of the public administration bodies includes supervision of
legality and efficiency supervision.
In the cases determined by law, there shall be previous supervision. The municipal
bodies shall be obliged to cooperate with supervision bodies.
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2.9.2 Supervision Bodies
The legality supervision of the municipal regulations shall be carried out by the
ministry responsible for the performance of functions related to local self-
government.
In accordance with the State Audit Act, the State Audit Bureau shall perform audit
of municipal financial operations.
The state administration body, whose competences are delegated to the
municipality, shall perform supervision of the delegated competences.
2.10 Relationship between Municipalities and the Government of the
Republic of Macedonia
2.10.1 Consultations with Municipalities
The municipalities shall be consulted on time and adequately in the procedure of
planning and decision-making on issues referring to them. (Todorovski and others,
2004: 8) They will also be consulted on the public matters in the preparation of the
spatial plan of the Republic, says the Local Self-Government Act. The laws on a
relevant sphere shall determine the manner of the consultations.
2.10.2 Cooperation Agreements
For coordination during the planning, programming and implementation of the
policies in particular spheres or in a group of spheres, the Government may sign
agreements on cooperation with one or more municipalities in the spheres or
sectors of mutual interest.
The Parliament of the Republic of Macedonia shall be informed about the
agreements from paragraph 1 of this Article.
Regarding the Macedonian partitocracia model, the Government has often
preferred party-based cooperation, signing agreements with those municipalities in
which the mayors are from the ruling parties.
2.10.3 Cooperation
The Government shall cooperate with municipalities on the issues that are of their
interest, such as:
the laws applying to municipalities;
the amount of general subsidy that shall be allocated to municipalities
during the current calendar year;
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sources of financing the competences.
2.11 Legal Protection of Local Self-Government
2.11.1 Protection of the Constitutional Position of Municipalities
The Council and the Mayor may launch an initiative before the Constitutional
Court of the Republic of Macedonia to assess the constitutionality of laws, the
constitutionality and legality of the general acts of ministries and other state
administration bodies with which the constitutional position and the rights of the
municipality, determined by the Constitution, are infringed.
2.11.2 Judicial Protection of Municipalities
The municipalities are guaranteed judicial protection before competent courts with
regard to the acts and activities of the state administration bodies and the
Government of the Republic of Macedonia that impede execution of competences
of municipalities determined by the Constitution and law.
2.12 Official Languages in Municipalities
The Macedonian language with its Cyrillic alphabet shall be the official language
in municipalities. Besides the Macedonian language and its Cyrillic alphabet, the
language and the alphabet used by at least 20% of the inhabitants of the
municipality shall be the official language in a municipality. The Council of the
municipality shall decide on the use of the alphabets and the languages spoken by
less than 20% of the inhabitants of the municipality.
3 Institutional Innovations
As early as 1999, the Government included decentralization into its agenda as a
reform priority. This issue was given even greater emphasis with the adoption of
the Ohrid Framework Agreement in 2001 and Amendments XVI and XVII to the
2002 Constitution. Decentralization is a key element of the Agreement and has a
significant place in the three-year action plan that assures its implementation.
Decentralization is a strategic goal for Macedonia, and achieving this goal requires
the commitment of both the central and the local authorities. It also requires the
support and participation of all the citizens of Macedonia as well as the support
and assistance of the international community, international programmes,
organizations and institutions in the process of its implementation. A coordinated
approach of the different development partners of Macedonia with regard to
decentralization is of paramount importance.
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Decentralization is intended to bring local government closer to citizens, to allow
for more efficient local problem solving, a higher level of participation of citizens
in the management of local affairs, enhanced transparency and reduced corruption
in management.
In 2003, the Government adopted an Operational Decentralization Programme that
defined the activities within the spheres of decentralization and transfer of
competences from a state body to municipalities.
Management and coordination structure in the decentralization process is
composed of:
Working Group on Decentralization, chaired by the State Secretary of the
Ministry for Local Self-Government, which is in charge of the
formulation of proposals and initiatives related to the transfer of
competences, as well as their management, adoption of laws determined
by the programme and the working policy in the decentralization process;
Coordination Body for decentralization, chaired by the Minister for Local
Self-Government, which has the role to give guidelines, advice,
frameworks within the decentralization process, to support the Working
Group and the ministries involved;
Deputy Prime Minister, responsible for decentralization, and the Minister
for Local Self-Government are in charge of presenting previously agreed
views to the Government.
The Government and the Association of Local Self-Government Units (ZELS)
signed a Cooperation Agreement in 2003 within which they identified their
relation to the coordination of activities relating to planning, programming and
implementation of the policies for completion of the local self-government reform.
Training of the local administration and local officials to better execute the
numerous competences and duties are of special importance to the decentralization
process. Particularly necessary are training courses in areas such as strategic and
development planning and financial management.
Municipalities also need help with organisational restructuring the local
administration in order to be able to respond to the increased burden of duties.
Considering the strategic determination of Macedonia to become a member of the
EU, it is going to face a strenuous period of complex reforms in all the areas of the
political and economic systems.
The local self-government reform will take place in the coming period as one of
the tools of the overall economic development and adaptation of the Macedonian
legal system to the EU legislation.
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3.1 Possible advantages and risks
In general, a comprehensive and well-designed local self-government should
significantly improve community management. The increased competencies and
strengthening of the political culture of the population should result in a more
active participation of citizens in local processes. An increase in the professional
level of the executive and administrative bodies along with improved
communication with a civil society will have a positive impact on the quality of
municipal management. Decentralized approaches to local development can be a
sustainable way to preserve multiculturalism in an ethnically and culturally
diverse country.
The outcome of the process depends on the level of public engagement,
accountability of local leaders, transparency of procedures. In circumstances of
weak and patriarchic political culture and wide and deep pauperization,
decentralization could contribute to further concentration of power to smaller
circles of unaccountable local leaders, economic or party oligarchies, or organized
crime structures.
Under circumstances of decentralization, the gap between the local population and
local Cesars could enlarge and lead to a broader discrepancy between personal and
group interests vis-a-vis those of the broader constituency.
The majority ethnic population could become over represented in the
administrative apparatus of the local self-government and the resources could be
distributed not according to need but as a result of a group pressure. The
management of public institution that is appointed by the mayor may also have an
ethnic composition.
We have to combine knowledge and competence with equitable representation.
Neglecting merit system of recruitment and applying spoils system based on
ethnic and party criteria we ruin the backbone of good management and
governance. Professionalism and transparent and inclusive decision making
process e.g. participative local democracy can greatly discharge political tension.
Decentralization could create a new opportunities for a misuse of power. Of
course, yet there are mechanisms for mitigating potential risks.
Well defined purposes, criteria and procedures for allocation of a portion of
centrally collected assets, introduction of schemes for fiscal equalization that
would equalize both inter and intra municipal differences, phased implementation
of decentralization - partial devolution and delegation of competencies as a way to
analyze the results of reforms and introduce corrective measures, introduction of
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criteria for managers and professional staff, including emphasis on skills and
experience rather than ethnic or party affiliation, respect for the democratic
environment at the local level could minimize discriminatory threats in
decentralization. The experiences of other countries show that there is no truly
viable alternative to decentralization.
Notes 1 See the European Commission‟s opinion of November 2006 on the country‟s application for membership of the European Union. 2 Wider and deeper approach to relations between the Charter and Macedonian local self-government (see Siljanovska-Davkova, 2001). 3 In the Report on Local Democracy in the Republic of Macedonia, prepared by Congress of Local and Regional Authorities in 2007 those competencies are evaluated as “fairly broad powers”. 4 About objective criteria see Leemans, 1970: 105.
References Leemans, A.F. (1970) Changing Patterns of Local Government. (Hague: International Union of
Local Authorities). Nikolovska, N. & Siljanovska-Davkova, G. (2001) Tranzition in Deficiency- from Unitary toward Bi-
national State (Skopje: Magor). Congress of Local and Regional Authorities (2007) Report on Local Democracy in the
Republic of Macedonia (Skopje). Siljanovska-Davkova, G. & Mitkov, V. (2004) Local Self-Government (Skopje: Magor). Siljanovska-Davkova, G. (2001) (Non)compliance of Macedonian Local Self-Government with European
Charter for Local Self-Government (Skopje: Council of Europe). Skaric, S. & Siljanovska-Davkova, G. (2007) Constitutional Law (Skopje: Law Faculty
“Justinianus Primus”). Todorovski, I. et al (2004) Functioning of Local Self-Government in The Republic of Macedonia (Skopje:
Institute for Sociological, Political and Juridical Researches).